China vows to crush move for Taiwan's independence

Taiwan's leaders must choose between recognising the island as part of the mainland or "following their separatist agenda to cut Taiwan from the rest of China and, in the end, meet their own destruction by playing with fire," Beijing said in a tough statement carried by the official Xinhua news agency.

The state-run China Daily, on its website, put it in plain terms: "Taiwan's leaders at crossroads -- peace or war."

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While the rhetoric was fiery, the statement also spelled out incentives such as direct trade, transport links and increased access to mainland markets if Chen fell in line and acknowledged that Taiwan was part of 'one China'.

Taiwan's international status could also addressed as a reward for good behavior, the Communist Party's Office for Taiwan Affairs and the Taiwan Affairs Office of the State Council said in a statement.